GameStop's trade-in program only got more complex as the game appraisal process grew into a tree of branching options, but the brick and mortar game retailer is simplifying the process of swapping games for cash and credit.
GameStop's PowerUp Rewards Pro members will get more in cash and credit for trade ins than non-members and in-store credit will yield a higher dollar amount than cash. The new trade-in program was said to condense the list of variables that go into assessing the value of game, which will allow the retailer to value more than 100 games at price of at least $20.
"We heard from customers that they want a better way to understand the value of what they sell to GameStop and this new initiative is a way to deliver on that feedback," said Jason Cochran, GameStop's senior vice president for pre-owned business. "What we're doing in moving from 10 possible price points to four is removing complexity, making it easy for our associates to convey the value of games we buy back and that in selling us their items they are gaining a unique form of currency to buy new products."
GameStop gave an example of how trade-ins will work after the new system launches on Aug. 18. A PowerUp Rewards Pro member would receive $22 credit for a game valued at $20 while nonmembers would be credited $16 for the same title.
News of the changes to GameStop's trade-in policies were revealed back on Aug. 4, when the company passed around an internal memo to prepare its employees for the new system.
"By eliminating the higher end price of products we buy and raising the lower end, we are able to raise the overall value the customers will receive," stated GameStop. "With this program, we will not have complex multi-tiered trade promotions for the associates to remember and less math for the customer to understand what they are getting for their games."
Roughly 70 percent of the $1.2 billion GameSpot award in trade-in credit was applied to new games, consoles and mobile devices, stated GameStop.
Trade-ins have long been a vital part of GameStop's business model, though local laws in some cities have caused the retailer to have to adjust it's business. Back in July of 2014, GameStop stores in Philadelphia began using fingerprint scanners to confirm the identities of customers seeking to trade in games.
The request came from law enforcement agencies in Philadelphia, who said the retailer's trade-in program classified it as a pawnshop. The classification made GameStop store in Philadelphia fall under the same scrutiny of traditional pawnshop, which much supply customer data to law enforcement agencies in order to help the authorities track the movements of ill-gotten goods.
